Occupancies however remained strong at 96.9%, and we see stronger growth in NPI as rents stabilise and leasing demand picks up. AUM has been cleaned up with the divestment of its single China asset, and we see growth momentum picking up in Australia following its expansion.

With 8.7% DPU yield, we reiterate BUY.

Stable occupancies

Cache Logistics Trust's 3Q18 revenue jumped 148% y-o-y/4.9% q-o-q while NPI rose 81% y-o-y/ 6.6% q-o-q. This was driven by 51 Alps Ave, with its new lease in place and CWT Commodity Hub master divestment of Centre in May.

Australian assets delivering; divesting in China

Aggregate leverage was 35.6%; it should improve further following its CNY87.0m (SGD17.8m) Jinshan Chemical Warehouse divestment announced in Oct. The divestment was valued at 12.5% above the property’s Aug 2018 valuation and a 22.5% premium to its Jun 2011 acquisition price. It should be completed in 4Q.

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